U.S. Bancorp Chief Executive Richard Davis should be happy that his company will escape having to pay a hefty fine for sloppy servicing practices, a fate that likely awaits the nation's top five mortgage servicers.
But Davis is uneasy about the
"What I worry about at night is there are five companies that are going to negotiate on the rest of our behalf, not only a settlement but the future rules of servicing," Davis said late last week during a financial services conference in New York. "On the other hand, I trust that their motivations are even greater than mine. They're good people. I'll let them do that heavy lifting. But I worry about it."
The terms of the final settlement are likely to require servicers to enact substantial changes to their practices. But it is still unclear whether such requirements will be extended to the rest of the industry.
